How to find cheap property in Portugal in 2021

Where is the cheapest place to buy property in Portugal? And how can you get a bargain property in Portugal? We have the answers.

Bargain property Portugal 2021
Photo by Jörg Angeli on Unsplash
11 January 2021, Emma Donaldson

Foreign demand continues to grow in Portugal, even in spite of the COVID-19 pandemic that is sweeping the world. Expats buying property in Portugal mainly focus their search in the Algarve and in the Lisbon area, while “golden visas”, previous tax incentives and a great safety record have been key when it comes to attracting foreigners to the country. With prices also changing due to the pandemic, let’s have a look at how and where to find cheap property in Portugal in 2021.

Where are the cheapest houses in Portugal?

The cheapest place to buy property in Portugal in 2021 remains the central region of the country. Unsurprisingly, the areas which are most popular with expat buyers, such as Lisbon and the Algarve, are the areas with higher property prices.

Using current property prices as reference, the cheapest houses in Portugal in 2021 are found in the area of the areas of Castelo Branco and Guarda with average prices around 650 euros/m2, compared to an average of 2,252 euros/m2 in the Algarve. Following closely behind are other provinces located in Portugal’s interior and central regions, such as Portalegre, BejaSantarémBragança and Vila Real

Bargain property for sale in the Algarve

Most British buyers who choose to move to Portugal want to take advantage of the laid-back Portuguese lifestyle and the Mediterranean climate, and for this reason they head to the beautiful beaches of the Algarve. Although the Algarve is quickly becoming one of the most expensive areas to invest in property, it is still much more affordable than the neighbouring Costa del Sol in Spain, for example.

For those who want a touch of luxury in Portugal but are buying on a budget, then we have the perfect solution. Portugal is home to several upmarket resorts, and while prices in these areas are a bit steep for expats simply wanting to buy a second home in Portugal, properties in the surrounding area are a great option. A small apartment in the luxury Quinta do Lago resort will be expensive, but if you head to one of the smaller towns in the surrounding Loulé area, 3 bedroom villas and townhouses, for example, are widely available for below 300,000 euros.

For those who want a quieter and cheaper option than the Algarve’s “Golden Triangle”, then there are plenty more chances to get a bargain and have an affordable life by the sea. The further west you travel in Portugal’s Algarve, then the more bargains you will find. The Silves area has plenty of options for those looking for a comfortable home close to the coast for a reasonable price, as well as Praia da Luz and Lagos.

How to save money on property in Portugal?

In general, if you are looking for property for sale or rent in Portugal for cheaper prices, then the best advice is to stay away from tourist hotspots, coastal resorts, and city centres.

The real bargains in Portugal are found by going inland (although take note that in the Algarve, this may only mean living a 10-minute drive from the beach). Living a little further from the airport will also help your budget stretch further.  

Another great way to save money is by buying a property that needs renovating in Portugal. If you’re up for a challenge and keen to take on a renovation project, or if you’re happier living somewhere a little less modern, then you will get more for your money throughout Portugal.

Will property prices drop in Portugal in 2021?

Despite the fact that house prices largely dropped across Europe in 2020 due to the COVID-19 pandemic, the process was initially slower in Portugal. However, after a surge in prices in recent years, property prices started to show a downward trend at the end of 2020 and this is expected to continue in 2021.

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